The way children think about money is established earlier than we might think – by the age of just seven, in fact.
This is according to Financial Capability, part of the government-sponsored Money and Pensions Service. Financial education in primary school, it says, needs to move beyond teaching children to recognise the pounds and pence that make up their pocket money. It should also be getting them ready to open a bank account by age 11.
Children and young adults who receive a formal financial education are more likely to be confident with money, research reveals. They are also more likely to be competent savers, understand how debt works, have their own bank account and generally possess the skills required to manage their money effectively as adults.
‘UNTAUGHT’ LIFE SKILLS
Why then, asks Financial Capability, is the school curriculum not prioritising these skills? Only four in ten children and young adults currently receive any kind of formal financial education, but schools that want to offer more are restricted by limited curriculum time and resources. That’s where Financial Capability comes in, providing much-needed resources to schools, parents, employers and individuals. Meanwhile, if you’re looking for other ideas to improve your child’s money confidence, you could try board games such as Cashflow 101 or Junior Monopoly.